The interim budget 2019 has been announced by our honorable finance minister Mr. Piyush Goyal. This budget addresses several issues in the real estate sector and made some big announcement to offer relief for common people including home buyers or owners.
No Tax on Notional Rent
If a person has ownership of multiple house or property, he/she takes much pain of tax on notion rent. Therefore this budget did an announcement that, if you have other homes which are vacant and you are unable to find tenants for the same or your parents and other family member are using it for self-living; in such case, you will get a waiver of tax on notional rent on a second self-occupied property. Earlier it was very painful for homeowners to pay the taxes on such properties whether it is vacant or used for self-living.
Profit from Capital Gain
Earlier, if you sell a property qualifies as long term asset (property should be at least 2 years old), in such case you can invest the profit or capital gain only in one property. But now finance minister announced in this budget that you can reinvest capital gain from a sold property in 2 different property not in one. If a net profit is up to Rs. 2 crores from selling the property, you may invest this amount in not one but two properties to evade paying capital gains taxes (CGT).